Question 1
Refer to Scenario 7.4 below to answer the question(s) that follow.
SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.
Refer to Scenario 7.4. Your economic profit last year was
◦ -$20,000.
◦ $40,000.
◦ $70,000.
◦ $90,000.
Question 2
Refer to Scenario 7.4 below to answer the question(s) that follow.
SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.
Refer to Scenario 7.4. Your economic profit last year was
◦ -$20,000.
◦ $40,000.
◦ $70,000.
◦ $90,000.
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Which of the 3 structures shown below has the shortest bond length? Justify your answer.
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